After years of struggling with a tight rental market, there are finally signs of relief for Kelowna residents. The city’s rental crunch is starting to ease as new projects near completion.
According to the latest data from the Canada Mortgage and Housing Corporation (CMHC), the vacancy rate for purpose-built rental units in Kelowna has increased from 1.9% in October 2020 to 2.7% in October 2021. This is a significant improvement from the record low of 0.2% in October 2018.
The increase in vacancy rates can be attributed to the completion of several new rental projects in the city. In the past year, over 1,000 new rental units have been added to the market, with more expected to be completed in the coming months.
One of the major projects contributing to the increase in rental units is the Brooklyn at Bernard Block, a 25-storey tower with 178 rental units. The project is set to be completed by the end of 2021 and has already started accepting applications.
Other projects that have recently been completed or are nearing completion include the Ellis Parc, a 20-storey tower with 237 rental units, and the Sole KLO, a 12-storey building with 178 rental units.
The increase in rental units is a welcome relief for Kelowna residents who have been struggling with high rental prices and limited availability. The CMHC reports that the average rent for a two-bedroom apartment in Kelowna has decreased from $1,700 in October 2020 to $1,600 in October 2021.
While the increase in vacancy rates and decrease in rental prices are positive developments, the rental market in Kelowna is still considered tight. The CMHC defines a healthy vacancy rate as 3% or higher, and the current rate of 2.7% is still below this threshold.
However, with more rental projects in the pipeline, there is hope that the rental market in Kelowna will continue to improve in the coming years. The city has also implemented measures to encourage the development of purpose-built rental units, such as waiving development cost charges and offering tax incentives.
In conclusion, the rental crunch in Kelowna is starting to ease as new projects near completion. While there is still room for improvement, the increase in vacancy rates and decrease in rental prices are positive signs for residents in the city.
